CollaborativeSupplyChainManagementTheInternetAdvantageJanuary2002PeopleSoftWhitePaperSeriesCollaborativeSupplyChainManagementTHEINTERNETADVANTAGEPEOPLESOFTJANUARY20022002byPeopleSoft,Inc.Allrightsreserved.Published2002.PrintedonRecycledPaper.RestrictedRightsPrintedintheUnitedStatesofAmerica.TheinformationcontainedinthisdocumentisproprietaryandconfidentialtoPeopleSoft,Inc.Nopartofthisdocumentmaybereproducedortransmittedinanyformorbyanymeans,electronicormechanical,includingphotocopyingandrecording,foranypurposewithouttheexpresswrittenpermissionofPeopleSoft,Inc.Thisdocumentissubjecttochangewithoutnotice,andPeopleSoftdoesnotwarrantthatthematerialcontainedinthisdocumentiserror-free.Ifyoufindanyproblemswiththisdocument,pleasereportthemtoPeopleSoftinwriting.PeopleSoft,thePeopleSoftlogo,PeopleTools,PS/nVision,PeopleCode,PeopleBooks,PeopleTalk,andVantiveareregisteredtrademarks,and“Peoplepowertheinternet.”andPureInternetArchitecturearetrademarksofPeopleSoft,Inc.Allothercompanyandproductnamesmaybetrademarksoftheirrespectiveowners.Theinformationcontainedhereinissubjecttochangewithoutnotice.Copyright©2002PeopleSoft,Inc.Allrightsreserved.ThisdocumentcontainsormaycontainstatementsoffuturedirectionconcerningpossiblefunctionalityforPeopleSoft’ssoftwareproductsandtechnology.AllfunctionalityandsoftwareproductswillbeavailableforlicenseandshipmentfromPeopleSoftonlyifandwhengenerallycommerciallyavailable.PeopleSoftdisclaimsanyexpressorimpliedcommitmenttodeliverfunctionalityorsoftwareunlessoruntilactualshipmentofthefunctionalityorsoftwareoccurs.ThestatementsofpossiblefuturedirectionareforinformationpurposesonlyandPeopleSoftmakesnoexpressorimpliedcommitmentsorrepresentationsconcerningthetimingandcontentofanyfuturefunctionalityorreleases.PEOPLESOFTPROPRIETARYANDCONFIDENTIALTHEINTERNETADVANTAGE1CollaborativeSupplyChainManagementTHEINTERNETADVANTAGECollaborativecommercehasreconfiguredsupplychains.ThedaysofrelyingonpatchworklegacyandEDI(electronicdatainterchange)systemsarequicklydisappearinginourrapidlychangingbusinessenvironment.Thenewsupplychainisbasedonconnectedprocesses,collectivedecisionmaking,informationtransparency,commonmetrics,andloweredbarriersofentryfornewpartners.Today’senvironmentdemandsfullintegrationandcollaborationasthekeystosuccess.Integrationofyoursupplychainmeanspureinternet.Perhapsmostimportantly,theinternetenablesyoutooptimizeyourexistingsupplychaintomaximizethereturnyoucanachievewithbothyoursuppliersandyourcustomers:anessentialelementinmaintainingyourcompetitiveedge.Automatingyoursystemsothatcustomersandsuppliersalikecancommunicatewithyourorganizationandeachotheriswhatenablesatrulycollaborativeapproachtomanagingyoursupplychain.Gonearethedaysofthelinearsupplychain.Today’ssupplychainmodelputsthecustomerasthehub.NotonlyisthisnowpossiblewithPeopleSoftPureInternetArchitectureTM,itiseasierthaneverbefore.Inthispaper,we’lltakealookathowPeopleSoftSupplyChainManagement(SCM)solutionsdeliver:•Lowcostofownershipduetoeaseofdeployment:allitrequiresisabrowser.•Efficiencythroughthecollaborativeportalwheretransactionsareperformedatthesource,onetime,forbetteraccountabilityofinformation.•Increasedreturnoninvestmentbyenablingyouandyoursupplychainpartnerstoengageintruecollaborativecommerceovertheinternet.•Effectivenessthroughstandardizedconnections(XML)thatenablehigh-volume,directcollaborationB2Bfordemandmanagement,fulfillmentlogistics,andreplenishment(suchaselectronickanban).•Increasedrevenueandmarketshareduetogreaterflexibilityinthesupplychain,providingtheabilitytorespondtonewsalesgeographies,customersegmentsandchannels,andsellingprogramsthroughinternettechnology.PeopleSoftoffersapowerfulpackagetorapidlyautomateandintegrateyourentireSCMcycle,enhanceyourbusinessprocesses,andengageallcontributors—fromcustomertosuppliertointernalusersworldwide.COLLABORATIVESUPPLYCHAINMANAGEMENTJANUARY20022THEINTERNETADVANTAGEPEOPLESOFTPROPRIETARYANDCONFIDENTIALLowCostofOwnershipApartfromthebusinessprocessesbenefitsofaninternet-architectedsystem,perhapsthemostimmediatelyrecognizablebenefitisthelowercostofownership.Internetapplicationsdrasticallyreducedeploymentandadministrationcosts.Thisisachievedbyusingastandardwebbrowseranddoesnotrequireadditionalapplicationsoftwareontheclientsystem.Insimpleterms,allanyoneinyourvirtualenterpriseneeds—whetheracustomer,supplier,ormemberofyourglobalinternalstaff—isawebbrowser.Bynotrequiringadditionalapplicationsoftwareontheclient,deploymentisnotonlylesscostly,butalsomuchfasterthanwithtypicalclient/serverinstallations.Internetapplicationsfundamentallychangewhatyoucandowithanapplication,includingcollaborationthroughoutyourentirevirtualenterprise.Thisisaverydifferentbusinessmodelfromthedaysofclient/serverarchitecture.Anyone,inanyrole,inanyorganizationcanuseawebbrowsertojoinyourbusinesscollaborationbecausetheuserinterfaceissimpletouseandeasytointegratebetweenapplications.Theuserinterface—consistentwithpopularwebsites—makespeoplecomfortablewiththeapplication.WhenusingPeopleSoftapplications,peoplecanleveragethesameinstinctsan